
"AppLovin (APP), a mobile advertising technology platform, experienced a steep sell-off on Thursday, 12th Feb 2026, despite reporting a headline Q4 earnings beat. The underlying situation is one of a 'beat and fade,' where the historical results appeared strong, but forward guidance and competitive concerns triggered a harsh repricing. The market was valuing future growth, and even the slightest indication of slowdown was met with a negative reaction. This downturn, however, offers a chance."
"Are we suggesting you buy AppLovin stock during this dip? Absolutely not. There is a more strategic trade available if you firmly believe in the stock's long-term potential. With this decline, option prices have surged, which is where the opportunity lies. If you would like to purchase APP at a 60% discount at approximately $145 per share and have some funds ready, here is an option."
"Sell a long-dated Put option that expires on 1/15/2027, with a strike price of $145 Receive approximately $1,062 in premium per contract (each contract represents 100 shares) That translates to about an 8.0% 'annualized yield' on the $14,500 you're reserving for the potential purchase of the stock This cash set aside in a savings or money market account will earn an additional 4.0%, pushing the total yield to 12.0%"
AppLovin underwent a sharp post-earnings sell-off driven by a 'beat and fade' dynamic where strong historical results contrasted with cautious forward guidance and competitive concerns. Option prices rose materially as the market repriced future growth expectations. Selling a long-dated put expiring 1/15/2027 with a $145 strike can generate roughly $1,062 in premium per contract, equating to about an 8.0% yield on the $14,500 cash reserved to buy shares. Parking that cash in a savings or money-market account at roughly 4.0% increases total annualized yield to about 12.0%. The trade offers a path to acquire shares at a deep discount but is not an unconditional buy recommendation.
Read at Forbes
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